Market Monitor ICT Netherlands 2019

Market Monitor

  • Netherlands
  • Electronics/ICT

18th June 2019

While ICT distributors are becoming larger, many smaller companies are changing their business models towards a more IT service-oriented approach.

      

 

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  • The Dutch ICT industry accounts for about 4.5% of GDP, with approximately 365,000 employees in the sector. About 95% of ICT businesses have less than 10 employees, and there are only 200 companies with more than 100 employees.
  • In line with the robust economic performance, ICT valued added grew 3.6% in 2018 and, despite the forecast of an economic slowdown, is expected to increase about 3% in 2019. Competition in the market remains high, and while ICT distributors are becoming larger, many smaller companies are changing their business models to have a more service-oriented approach.
  • Profit margins in the Dutch ICT sector are expected to remain stable over the coming 12 months after a slight deterioration in 2018. The overall indebtedness of the sector is not overly high and banks are generally willing to lend to ICT businesses.
  • On average, payments in the ICT industry take between 30 and 60 days and our portfolio payment experience has been good over the past two years. The number of payment delays and insolvencies is low and expected to remain stable in H2 of 2019.
  • Due to the solid performance and benign credit risk situation, our underwriting stance for this industry remains generally open. However, given the highly competitive environment and the low margins of many ICT businesses, the requirements for financial information on ICT buyers are very high.

 

 

 

 

 

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The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.